Both are below 52 week lows...

I plan on buying 10k of Ford & GM Stock:

Ford Motor Company F (NYSE) $5.96 $-0.14 -2.30%

General Motors GM (NYSE) $22.17 $-1.14 -4.87%

Be patient with these (both pay dividends) and you can make a few bucks.

 

I'd been looking at Ford since it's a realitively cheap stock and with the company's size I'd be shocked to see them go bankrupt. Along the same rationale I was looking at countrywide home loans they've taken a serious thrashing the past two days with rumors of bankruptcy. Again with the size of the company I'd be surprised if they went under so gambling a bit there might make for a decent long term investment opertunity.

Take it easy
Brewski

 

Damn, is GM really that low again, argh.
I was trading it at like $19.00 a few years back and regretted not holding onto it into the 30s and now I'm regretting not waiting longer to cover the shares that I'd shorted at $32.00. LOL

I'm still holding 5k shares of Ford from way back at over $9.00, I guess I'll still be holding onto them for umm, quite a bit longer now.

I agree that BOTH companies are likely GREAT buys right now.

 

I can't believe Ford is in this pickle.. the GT's were commanding sticker +, and the Shelbys above sticker. They messed that up by not having transmissions for the GT sticks, and producing too few Shelbys.

I don't know what GM story is.. killing the F-Body wasn't a help.

 

http://stocks.us.reuters.com/stocks/...c=66&symbol=GM


IDK about that...Bob i would consider something else.

 

Ford is in the position due to a few factors, bear this is in part from info I get from my bro who was a tech at a Ford dealer for over 5 years and has now transitioned into a Serivce Advisor where he can see some of the stuff that other dont normally see. Also coupled with what research that I come up with.

Mind you I can get 2 discounts either through my Company OR my Bro's family discount and honestly there isnt much that I am interested in...

We were discussing this recently and this was his opinion....

1) Recalls- The Firestone tire recall- this is probably the leading factor, the cost of this recall is millions +, Recalls on other veh never helps either.

2) Company buying- Ford since the late 90's into the mid 2000's has made some major purchases to get some larger markets, you pay out serious cash to get the companys, then to start selling them at a loss. Land Rover and Jag for example were bought with the intent of making a profit. Ford bought Volvo and pirated ALOT of their designs where are now seen in many of the newer model cars and trucks.

3) Vehicle Quality- moving along the lines of the recall, Ford has had some HORRIBLE luck with some of their models such as the Focus, the recall machine, and a few other cars and trucks that just come with JUNK parts where either buyers are afraid to purchase and shy away or its covered and Ford has to foot the bill. Service dealerships are having a hard time getting Ford to warrentee parts/labor which makes it a turn off to car purchasers.

4) Vehicle avalibility- Ford Makes dealerships hit certain sales marks before they will allow them to purchase higher end, higher demanding cars. So when you buy a car often at least you have it serviced at the dealer you bought it from, so if your not getting that foot traffic, a potential sale is lost.

5) Markup- When Ford sells a vehicle, the dealer has an actual invoice, once its sold, no matter the dealer mark up, ford doesnt get a kick back. Only IF Ford raises the price can they reap a benefit of a selling price, but then dealers get squeezed.

6) Cost of doing business/ Leadership- Prob another top 3 reasons, having the Ford Family run the company did not help, decisions made 6-8 yrs ago have put Ford in the **** poor condition that it has been in for years.

Now this was our discussion at it seems a viable one, Ford has HURT their image and their brands are lack luster and just now they are turning it around but we felt it may be a too little, too late

 

As a financial analyst, I have to say both stocks are attractive. I lean more towards FORD over GM (I know I cant believe I just said that), but both are solid stocks to have as neither company will ever fold and if so someone will step in and take over the reigns of the company. I agree with the statements above though they really hurt their image, and the death of the Ford Taurus really killed them. For a period in the late 80's and most of the 90's Ford made a killing off their trucks and the taurus/crown vic lines. Now that foreign manufacturers are stealing some of the truck market (namely the toyota tundra), and the loss of the top selling mid-sized family sedan in the late 90's early 200's (taurus), they have tanked. Then they bought Jaguar and did next to nothing with that brand (now looking to sell it and land rover). They just have made a mess of mistakes. However, its FORD, and at one point or another they will rebound. Tons of attractive stocks out there now though with the market tanking so bad...

 

Fawking great call. Countrywide is up 51.37% today as of the close. I hope you and others were able to get in. Im kicking myself for not having any clear funds.

EDIT to provide link: http://moneycentral.msn.com/detail/s...ote?Symbol=CFC

Rumor has it BOA might be taking them over. This might actually not be the end of their run.

 

I wish I'd had some expendable cash on hand for that move... It's currently tied up in project money pit "1995 T/A". Hopefully Ford will still be in the single digits this summer...

Take it easy
Brewski

 

Yup BOA is buying them for $4B I believe. Should be interesting to see what they can do with Countrywide with a good deal of the sub-prime issues out of the way.

 

I just saw that on MSNBC that why prices jumped 50+% lol.

 

Haha pretty much. There was a rumor that it would happen, but didnt think it would happen so quickly. I have some shares but wish I snagged more when it bottomed out. I am ready to dump mine soon though. Im not sure how much BOA is going to be able to do with countrywide. Their name is already tainted in the market place, so maybe they can give them a face lift and turn them around but if anyone does own their stock I wouldnt expect their turnaround to be long lasting. JMO though.

 

Question for the people with investing experience: What makes you so certain that GM and/or Ford will never go under? Their situation right now is pretty bleak, and I really don't see a light at the end of the tunnel.

 

they are the two largest auto manufacturers in the world. not just in actual vehicle production either. both ford and GM, along with their subsidiaries produce parts sold or licensed to every other manufacturer on the planet.
look at it this way, GM being "weak" right now means they only control about 28% of the total materials, parts, and production of vehicles on the planet. just because auto sales are a touch off doesn't mean the company in general is feeling any pain at all.

 

^its not just the car sales hurting GM its there mortgage company too, with all the foreclosures that is another reason there stocks aren't very good right now.

 

The future of both Ford and GM has been legislated by the new standards for mileage and signed by the President. When the new requirements go into effect in a few years, lots of new cars.. fuel efficent cars.. will be built and sold- by GM and Ford.

"For the first time in more than 30 years, auto maker face a significant new federal mandate to boost fleet-wide fuel economy to 35 miles per gallon by 2020. GM Vice Chairman Robert Lutz said technology to meet that new target will add $4,000 to $10,000 to the cost of each vehicle. Granted, incomes should rise by then, he said. But the days when consumers could expect vehicles to get cheaper relative to their incomes could be over for a while."

 

The market sucks these days....

 

since i am not close to retirement, i don't see it as a bad market. i see it as a sale on the stocks i want. i work for lowes and right now it is like a fire sale on the stock. with the company planning to break into the canadian and mexican markets with some force in 2008 and having announced a strategic business agreement with india for development of one of the fastest growing economies in the world.
i am gobbling up all the stocks i can afford and in 10 years after the market has been rebounding for a few years again, i can sell it off, get conservative with my retirement funds, and cruise through those last 22 years of work before i am eligible for full retirement

 

If you're referring to GMAC, they sold it off several months ago.

I still don't see the prospet of a strong resurgence at either Ford or GM, I think foreign competition will continue to eat into their market share for years to come. The idea of making a strong push with more fuel efficient cars when the new standards kick in might have some positive effect, but they better get crackin'.

 

As others haver said regardless of the how down the auto industry is they still have a significant share of the market. Plus, both Ford and GM have stakes in other markets (not just auto industry), so their survival isnt simply tied to their auto sales. Sure, they dont look like great prospects right now, but if you look at their stock price history they are trading at a significant discount right now and when the market rebounds they should do fairly well in my opinion. Ford and GM are such mainstays in our daily lives and in our economy that they are almost to big to fail. Where it be through a buyout or even government assistance, Ford and GM will survive.